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2007 (4) TMI 295 - AT - Income TaxDeduction u/s 80HHC - Export Profits - 100 per cent Export Oriented Unit (EOU) - double deduction - whether turnover of an EOD for which deduction u/s 10-IB has been claimed, can be included in the turnover for claiming deduction u/s 80HHC - HELD THAT:- In the instant case also the turnover of sales made by the assessee for which deduction under section 10B has been claimed did not answer the description of turnover eligible for deduction under section 80HHC. Therefore, the Assessing Officer rightly excluded such turnover from export turnover while computing relief available to the assessee under section 80HHC of the Income-tax Act. It is also relevant to point out that as per clause (iii) of sub-section (6) of section 10B, no deduction shall be allowed u/s 80HH or 80HHA, 80-IB or 80-IA in relation to the profits and gains of the undertaking who claimed deduction u/s 10B of Income-tax Act. Therefore, to ensure that no assessee should claim any benefit over and above the benefits u/s 10B in respect of same industrial undertaking, the said provision has indicated separately and exclusively to clear that double deduction should not be claimed for the same income. Moreover for claiming the deduction under the said sections condition to make the export is not mandatory while claiming the deduction u/s 10B and 80HHC of the Income-tax Act. It is mandatory that the income to be derived from export. In our opinion, non-mentioning section 80HHC in the aforesaid clause (iii) of sub-section (6) of section 10B will not entitle the assessee to claim deduction u/s 80HHC for the reason that the deduction u/s 80HHC is otherwise also not available to the units claiming exemption u/s 10B, because the profits of the unit claiming deduction u/s 10B is not to be included with the profits eligible for deduction u/s 80HHC and since in such type of industrial undertaking no eligible profit can be derived without having export turnover, therefore, export turnover which earned profit eligible for deduction u/s 10B should also not be included in the turnover to claim deduction u/s 80HHC of the Income-tax Act. Thus, we set aside the order of ld. CIT(A) on this issue and restore that of the Assessing Officer. In the result, the appeal of the department is partly allowed.
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